# In the matter of India SME Technology Services Limited

> NCLT judgment dated 2024-10-14. Citation: TCN-2024-NCLT-00442. The case involves an application filed by M/s India SME Technology Services Limited, through…

- **Court:** NCLT
- **Order date:** 14 Oct 2024
- **Citation:** TCN-2024-NCLT-00442
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/india-sme-technology-services-limited-8e11f97d

## Summary

### Background

The case involves an application filed by M/s India SME Technology Services Limited, through its CEO Sh. Rajiv Kumar, under Section 60(5) of the Insolvency & Bankruptcy Code, 2016, read with Rule 11 of the National Company Law Tribunal Rules, 2016, seeking to withdraw/cancel the voluntary liquidation process initiated under Section 59 of the Code. The company had initiated voluntary liquidation due to its inability to fulfill its main objective of promoting technological upgradation in the MSME sector and discouraging financial performance. However, a feasibility study later suggested the company could be revived and contribute to the Green Energy sector. The Board of Directors of SIDBI, the primary stakeholder, approved the proposal for revival and withdrawal of

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## Facts

M/s India SME Technology Services Limited initiated voluntary liquidation under Section 59 of the IBC due to its inability to meet its objectives and poor financial performance. The company was incorporated on 2005-11-17. SIDBI's Board of Directors proposed voluntary windup/liquidation on 2019-04-26. The company's 14th Annual General Meeting approved the voluntary liquidation on 2019-10-18, and Mr. Vinay Bansal was appointed as Liquidator. SIDBI commissioned a feasibility study by Brickwork Analytics (BWA), which suggested the company could be revived and contribute to the Green Energy sector. The Board of SIDBI approved the proposal for revival and withdrawal of voluntary liquidation on 2022-08-05. Stakeholders also approved the withdrawal from voluntary liquidation

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can allow the withdrawal of voluntary liquidation proceedings …

**Ratio:** The Adjudicating Authority has the inherent power to pass orders necessary for the ends

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**Reasoning:** The court reasoned that while the IBC contains provisions for voluntary liquidation under

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**Interpretation:** The interpretation is that the absence of a specific provision does not bar the

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**Application:** The ratio and reasoning are applied to the specific facts of the case, where

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## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Appellants:** M/s India SME…
- **Respondents:** Vinay B…
- **Advocates:** Nitin D…; Jyot…; +1 more

## Timeline

- **2005-11-17 — Company Incor…**: Applicant Company…
- **2019-04-26 — SIDBI Board…**: Board of Directors of SIDBI proposed the idea to voluntarily windup/liquidate the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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